ELSS Tax Savings Calculator

ELSS is the only mutual fund that saves tax under Section 80C. Calculate your potential tax savings and maturity corpus.

Estimated Total Value
₹32,71,320
Annual Tax Saved ₹46,800
Total Invested ₹15,00,000
Wealth Gain ₹17,71,320
Invest in ELSS

Investment Breakup

Invested
Growth

What is ELSS?

ELSS (Equity Linked Savings Scheme) is a diversified equity mutual fund which has a dual benefit of tax saving and capital appreciation. It has a mandatory lock-in period of 3 years, which is the lowest among all tax-saving options under Section 80C.

Why Choose ELSS?

  • Shortest Lock-in: Just 3 years compared to 5 years for FD and 15 years for PPF.
  • Higher Potential Returns: Since it invests in equities, it has the potential to beat inflation significantly.
  • SIP Option: You can start saving tax with as little as ₹500 per month.
  • Professional Management: Managed by expert fund managers who pick high-growth stocks.

How Tax Saving is Calculated?

Under Section 80C, you can deduct up to ₹1.5 Lakh from your taxable income. For an individual in the 30% tax bracket, this leads to a direct tax saving of ₹45,000 per year (excluding cess).

FAQs

Is the maturity amount taxable?

ELSS falls under the Long Term Capital Gains (LTCG) tax category. Gains above ₹1.25 Lakh in a financial year are taxed at 12.5% (as per Budget 2024).

What happens after 3 years?

Once the 3-year lock-in is over, you can either withdraw the money or continue staying invested to let it grow further. We usually recommend holding for 5-7 years for better equity returns.

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